Hewlett Packard Company Case Study

1067 words - 5 pages

CASE: Hewlett-Packard Company: Network Printer Design for Universality (p. 358-363)

Question 1

It allows HP to postpone (product standardization, postponement) the allocation of laser printers (or specification of printer engine) to specific regions by about two months. Thus, in these two months the decisions can be made based on the aggregate demand forecast (US & Europe) in all regions. Production team believes universal power supply can enable HP to better respond to regional demand (US & Europe) and reduce its inventory costs.

Question 2

1. Disadvantages / costs of the universal power supply include:

i. Increase material cost (USD 30/unit)
ii. Possible power play among ...view middle of the document...

Elimination of costs of discounting unsold products at end of PLC (due to which customers expect HP to drop printer prices over time, and undercutting HP’s ability to command premium prices in the market).
ix. Elimination of costs associated with unused power supply modules (i.e. discarded from transshipped printers, needing re-configuration at the end of PLC)

Question 3

1) When the product is first introduced into the market, demand is highly volatile and unpredictable (high forecast errors) as demand is not known with certainty.
2) The cost of stock-outs is higher during the ramp-up (i.e. introduction) stage of the product life cycle because HP is able to charge a premium due to lack of competition initially, and the adverse publicity of stock-outs at the beginning can impact the ultimate success of the product.
3) Therefore, the benefits of risk pooling through the use of the universal power supply are greater at the start of the life cycle when more safety stock needs to be held (to avoid stockouts and corresponding costs), and inventory holding costs are high (due to greater safety stocks).
4) At end-of-life stage, there is less fear of adverse effect on future sales and therefore cost of stockouts considerably lower (also resellers might steer custs. to wait for the new incoming replacement product)
5) Toward the end of the life cycle, inventories are reduced, and transshipment becomes an option to alleviate demand imbalances between different regions. Therefore, the benefits from a cost reduction in transshipment (re-configuration costs eliminated if using universal power supply) become more important at the end of the product life cycle (as compared to if using distinct power supplies).

Question 4

The lead time that results from outsourcing the printer engine to a Japanese supplier that holds monopoly power is very long compared to the life cycle of the product (41/2 mths. in an 18 mths. PLC). Also, under the buy/make framework, outsourcing a key component of a modular product may be a risky decision for the company. Therefore, in order to reduce this risk and the lead times, HP Boise should consider manufacturing (and develop competency) of the printer engine in-house if there is enough production capacity. In addition, this would provide savings in transportation...

Other Papers Like Hewlett-Packard Company Case Study

Bottling Company Case Study

1020 words - 5 pages Bottling Company Case Study Svontaya Murray Professor P. Self Math 300- Statistics June 8, 2015 Bottle Number | Ounces | Bottle Number | Ounces | BottleNumber | Ounces | 1 | 14.5 | 11 | 15 | 21 | 14.1 | 2 | 14.6 | 12 | 15.1 | 22 | 14.2 | 3 | 14.7 | 13 | 15 | 23 | 14 | 4 | 14.8 | 14 | 14.4 | 24 | 14.9 | 5 | 14.9 | 15 | 15.8 | 25 | 14.7 | 6 | 15.3 | 16 | 14 | 26 | 14.5 | 7 | 14.9 | 17 | 16 | 27 | 14.6 | 8 | 15.5 | 18

Bottle Company Case Study

607 words - 3 pages Bottle Company Case Study Statistics MAT/300 As Manager of the Harley Bottle Company, I have been receiving complaints from customers on the quantity of product received when purchasing our sixteen ounces soda bottles. These complaints have caused my boss to worry and would like me to investigate the issue at hand. I will begin my investigation by instructing the employees to pull at random 30 bottles from all the shifts at the bottling

Bottling Company Case Study

572 words - 3 pages Students, please view the "Submit a Clickable Rubric Assignment" in the Student Center. Instructors, training on how to grade is within the Instructor Center. Assignment 1: Bottling Company Case Study Due Week 10 and worth 140 points Imagine you are a manager at a major bottling company. Customers have begun to complain that the bottles of the brand of soda produced in your company contain less than the advertised sixteen (16) ounces of

Bottle Company Case Study

662 words - 3 pages 1: Bottling Company Case Study Due Week 10 and worth 140 points Imagine you are a manager at a major bottling company. Customers have begun to complain that the bottles of the brand of soda produced in your company contain less than the advertised sixteen (16) ounces of product. Your boss wants to solve the problem at hand and has asked you to investigate. You have your employees pull thirty (30) bottles off the line at random from all the

Bottling Company Case Study

1031 words - 5 pages Strayer University MAT 300 Dr. Soosan Shahrokh December 12, 2014 Bottling Company Case Study In this project we were given the case of customer complaints that the bottles of the brand of soda produced in our company contained less than the advertised sixteen ounces of product. Our boss wants us to solve the problem at hand and has asked me to investigate. I have asked my employees to pull Thirty (30) bottles off the line at random

Huge Company Case Study

1507 words - 7 pages Huge Company Case Study Today, more and more organizations prefer Activity-Based Costing System (ABC) to the functional-based costing system. ABC takes into account minute details regarding the activities and the factors that add up to the final cost. ABC is based on an activity hierarchy wherein the different activities influencing the cost build up are grouped into different categories. Such a costing method improves cost measurement by

Cannon Company-Case Study

2287 words - 10 pages Case Study: The Dannon Company OL 690: Responsible Corporate Leadership Southern New Hampshire University March 25th, 2015 Introduction Danone, the parent company and U.S. subsidiary of Dannon, was founded in Barcelona Spain in 1919 by Isaac Carasso (Marquis, Shah, Tolleson, & Thomason, 2011). Isaac had the goal of developing a yogurt for more than the purpose of taste, but with additional inherent health benefits (Marquis, et al

Title: Bottling Company Case Study

656 words - 3 pages  Title: Bottling Company Case Study Name: Course: Course code: Institution: Date: Bottling Company Case Study Complaints have been received that the bottles of soda produced in our company contain less than the advertised sixteen (16) ounces of product. The purpose of ensuing study is to verify the claim of the complainers. A random sample of 30 bottles was drawn from among all the shifts of the plant. Bottle

Case Study: the Cannon Company

1743 words - 7 pages Case Study: The Dannon Company Student’s Name Institution Affiliation Case Study: The Cannon Company Introduction Dannon Company was among the US subsidiary of Danone, which was one of the largest health-focused companies in the whole world. Its global business centered on fresh dairy such as active yoghurt, medical nutrition, baby nutrition and the bottled water. In 2008, Dannon did manufactured and also marketed

Eagle Manufacturing Company Case Study

3592 words - 15 pages Case Name: Eagle Manufacturing Company Case Study I. Major Facts A. Ted Jones is the supply manager for the Eagle Manufacturing Company. He has been the supply manager for two years. B. Ted has been struggling with one crisis after another while trying to placate operations, plant maintenance, and seemingly half the management team (and their assistants). C. Although Ted Jones has a great team of buyers

Case Study: Treadway Tire Company

724 words - 3 pages A. Company Overview This case study examines Treadway Tire Company and its tire manufacturing plant in Lima, Ohio. The two root causes of the plant’s problems are high turnover and job dissatisfaction, which are expressly correlated to the company’s line foreman. The line foremen are responsible for managing workers within their section of the manufacturing line and also supervising 12-hour shifts. The line foreman are the lowest ranked

Related Essays

Chapter 14 Case Hewlett Packard Company

982 words - 4 pages Assignment # 2 - Chapter 14 Case - Hewlett-Packard Company 1. Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious. The first problem identified is the under-management of the company. The former CEO, Carly Fiorina, while being highly visible in the press failed to provide the

Texas Instruments And Hewlett Packard Case Solution

3825 words - 16 pages Case Study 13-3: Texas Instruments and Hewlett-Packard Case Context: Texas Instrument (TI) and Hewlett Packard (HP) are two companies famous for introducing Electric and electronic products. Although competing in similar industries, their strategies are very much different. Problem Definition: Given the differences in strategy between two firms, what would you expect would be the differences between TI & HP in their

Southern Company Case Study

1047 words - 5 pages Assignment 4: Southern Company—Case Study Author/Student: Antoine Jean “AJ” Garand Instructor/Professor: Dr. Marie-Line Germain, Ph.D. Course: Talent Management – HRM 532 Date: Sunday, February 26, 2012 Evaluate the effectiveness of the roles that the strategic leaders played in the formation of the performance management strategy. Silzer and Dowell (2010) define Talent Management as “ an integrated set of processes, programs, and

Case Study Whistler Company

769 words - 4 pages Whistler Corporation Case Study Ivana Cizmic BU502 Instructor: Dr. Peggy Bilbruck Southern States University 2016 Abstract This case study is about analyzing the Whistler Corporation business issues. The Whistler Corporation at some point had to make a very important business decision. The decision was about if the company should continue manufacturing operations in the US or not. The company had experience some serious problems with